Corporate Environmental Corporate Environmental Management in ThailandManagement in Thailand

Dr. Qwanruedee ChotichanatawewongDr. Qwanruedee Chotichanatawewong

Assistant PresidentAssistant President

Thailand Environment InstituteThailand Environment Institute

Profile of ThailandProfile of Thailand

• EconomicsEconomics– Lower middle income industrial Lower middle income industrial

developing nationdeveloping nation

– GDP: GDP: 223 Billion USD223 Billion USD• GDP per capita: 9,100 USDGDP per capita: 9,100 USD• GDP of industry sector: 45%GDP of industry sector: 45%• GDP of service sector: 45%GDP of service sector: 45%• GDP of agricultural sector: 10%GDP of agricultural sector: 10%

– Growth Rate Growth Rate • 5% in 20065% in 2006

Number of

customers

• EnvironmentEnvironment– Air PollutionAir Pollution

• Important sources: Vehicles & Factories

– WastewaterWastewater• Important sources:

– Household: 14 million m3/day– Factory: 7 million m3/day

– Solid WasteSolid Waste: 92% collection capacity• Increasing

– 1993: 30,600 ton/day– 2002: 39,200 ton/day

• Generation rate in Bangkok– 1 kg/capita/day

Profile of ThailandProfile of Thailand

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Initial Pollution Control period

(Environmental standards and

regulation)

EnvironmentalAwarenessPeriod

EnvironmentalImprovementPeriod

- - End of pipe Treatment

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Public participationDecentralization

Trade and Environment

Economic Instrument

No. offactories

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Public Participation

Decentralization

Environmental Compliance Period

Environmental Improvement Period

Environmental Awareness Period

Initial Pollution Control Period

Industrial Development Period

All action are

already in implementation stages but not fully implemented in some actions

Stage I Stage II Stage III

Before 1992 to 1992 1992 to 1995 1995 to Present

Environmental Management in Thailand

Policies Related to Emission and PollutionPolicies Related to Emission and Pollution

• 1st stage• Only command and control• Lacking of participation

• 2nd stage• Not yet sustainable• Not yet full collaboration of parties

• 3rd stage• More sustainable• Require more collaboration from all parties• Require stronger enforcement, voluntary and

public awareness including EPR and greening supply chain

Policies Related to Emission and PollutionPolicies Related to Emission and Pollution

• Thailand is implementing– End-of pipe Treatment

• Standard

– Self Regulation• Self monitoring report

– Voluntary Approach– Economic Instruments

• Fee

• Permit

• Food Production SectorFood Production Sector– Case study: Chareon Pokphand Case study: Chareon Pokphand

Foods (CPF) PCLFoods (CPF) PCL..

• Automobile SectorAutomobile Sector– Case study: ToyotaCase study: Toyota

2 Case Studies of Good Voluntary 2 Case Studies of Good Voluntary Initiated Initiated

by Business Sectorby Business Sector

• Initiated by CorporateInitiated by Corporate– Chareon Pokphand Foods (CPF) PCL.– Largest food company in the ASEAN

• Livestock and Agriculture

• Invested in Thailand and around the world• Total sale in 2005: 3200 1133, million USD ( ,

7 4 million Baht)

– Business includes• Pig farm

– Selling raw pork and cooked pork (Sausage e.g..)

– Selling pigs and pig breeders

11stst Case Study of Good Voluntary Initiated Case Study of Good Voluntary Initiated by Food Production Sectorby Food Production Sector

• Initiated from ProblemsInitiated from Problems– Poverty

– Lacking of land ownership

– Lacking of knowledge

– Draught

• Collaboration ofCollaboration of– Local agricultural cooperation

– Department of Agricultural Extension

– Local government

– Bangkok Bank

11stst Case Study of Good Voluntary Initiated Case Study of Good Voluntary Initiated by Food Production Sectorby Food Production Sector

11stst Case Study of Good Voluntary Initiated Case Study of Good Voluntary Initiated by Food Production Sectorby Food Production Sector

• Purposes of the project– Develop integrated agriculture for

increasing incomes– Form effective management system

in agricultural cooperation– Preserve fertility of lands and

prevent slash and burn agriculture

• Coverage of the project– Nong wa, Chachoengsao province– 495 acres

Chachoengsao

Details of the ProjectDetails of the Project• General InformationGeneral Information

– Started in 1977– 50 farmers jointed 10-year contract

• After 10 years what they get?– Land 9.5 acres– House– Farm (30-pig capacity)

• Pig farm Pig farm (Breeding farm)– Breeding and raising pig to 18 kg (8

weeks) and send to a central farm

– Contract farming with CPF – Income:

• 7,500 Baht/month (During debt period: first 10 years)

• 20,000 Baht/month

• Contract SystemContract System– CPF is a collateral security guarantee for the loan– Guarantee price– Providence of inputs for pig farm– Setting up a cooperative (CPF provide training as

well)• Farmers in the community own stocks of the cooperative

• Manage by farmers

Details of the ProjectDetails of the Project

Flow Chart of the ProjectFlow Chart of the Project

BankBank CPFCPF Central and Local Central and Local GovernmentGovernment

FarmerFarmer

FarmFarm

Market Market by CPFby CPF

• House/School

• Pig/Feed food/Medicines

• Contract farming

• Management• Knowledge

• Utilities

• Incomes

• Loan

• Payment

• Interests

• Pig 18 kg (8 weeks)

• Pig 100 kg

Environmental ManagementEnvironmental Management

• Zero wasteZero waste– Biogas production from excrement

– Sludge from biogas production used for soil enrichment

OutcomesOutcomes

• EconomicEconomic– Jobs security– Better quality of life– More incomes– Supplementary jobs (Growing mango)

• EnvironmentEnvironment– Pollution reduction– Increasing resources

CPF caseCPF case• Started 30 years ago when

– No regulation

– No mandatory

• Study to answer– What is a mechanism driving the project?

– How CPF makes the project work and

– How CPF maintains the program?

Voluntary Initiative Promotion

• Tools will be used– Interview and Questionnaire with Private sector

– Consultation with Governmental sector

• Use answers for– Come up with Policy Simulating the Mechanis

m

– Disseminate the policy in Food companies in Thailand

Voluntary Initiative Promotion

ToyotaToyota

22ndnd Case Study of Good Voluntary Initiated Case Study of Good Voluntary Initiated by Automobile Sectorby Automobile Sector

Detroit oDetroit of Asiaf Asia

2. 2. Eco CarEco Car

Environmental Environmental

ConcernConcern

ThailandThailand

1. 1. Greening Greening Supply ChainSupply Chain

1. Greening Supply Chain1. Greening Supply Chain– Supplier: total number 153 companies

– Assist suppliers to achieve environmental standard (ISO 14001)

• Win-Win Solution• Supporting activities

– ISO 14001 certified• 37 companies in 2002 (25%)• 146 companies in 2005 (95%)

22ndnd Case Study of Good Voluntary Initiated Case Study of Good Voluntary Initiated by Automobile Sectorby Automobile Sector

2. Eco Production2. Eco Production– Concern not just only energy efficiency

– Take environmental aspect into account• Use recyclable materials in cars• Started to use recycled materials in cars • Minimize the use of toxic chemicals (In production

line)• Stop using Substance of Environmental Concern

– Hilux Vigo – Yaris (Will be dine by the end of 2007)

• Emission standard• Energy efficiency

22ndnd Case Study of Good Voluntary Initiated Case Study of Good Voluntary Initiated by Automobile Sectorby Automobile Sector

Toyota caseToyota case• Study to answer

– How Toyota help suppliers improving their environmental management through supply chain system?

– How Toyota incorporates Eco concept in a car production line?

Voluntary Initiative Promotion

• Tools will be used– Interview and Questionnaire with Private sector

– Consultation with Governmental sector

• Use answers for– Come up with Policy Simulating the Greening

Supply Chain

– Come up with Policy Simulating the Eco Production

– Disseminate a policy for Greening supply Chain in Car companies in Thailand

– Disseminate a policy for Eco Production for every car produced in Thailand

Voluntary Initiative Promotion

Thank YouThank You for for

Your AttentionYour Attention